The gross amount of accounts receivable should be reﬂected on the balance sheet; this is what the company expects to collect in cash

Question

Quizplus · Accepted Answer

The gross amount of accounts receivable is the total amount owed by customers, but the balance sheet typically reflects the net amount, which is the gross amount minus any allowance for doubtful accounts, representing what the company expects to collect in cash.

The Gross Amount of Accounts Receivable Should Be Reﬂected on the Balance